If consumption of a good creates positive externalities, then
a. private demand is greater than marginal social benefit
b. marginal private benefit is less than marginal social benefit
c. private cost is less than marginal social cost
d. marginal social cost is greater than marginal social benefit
e. marginal private cost is zero
B
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Explain why the expenditure multiplier is greater than 1
What will be an ideal response?
One way to remove the excess labor supply problem from a minimum wage policy is to have the government hire all unemployed workers at the minimum wage. What is the key drawback of this version of a minimum wage policy?
A) The deadweight loss may increase substantially. B) The cost to the government may be very large. C) Consumer surplus losses increase further. D) A and B are correct. E) B and C are correct..
A country has an absolute advantage over another if it can produce a good with fewer resources
a. True b. False Indicate whether the statement is true or false
The labor demand curve tells us
A. how many workers the firm will want to hire, given the wage. B. the marginal product created by an additional worker times the wage. C. the marginal revenue created by an additional worker. D. the marginal profit generated by an additional worker.